Generic Base Decision Tool for The Seed Cotton Program

Under the new seed cotton program, cotton will now be eligible to receive support beginning with the
2018 crop year. The 2018 crop year also signals the end of generic base acres. Similar to an option made
prior to farm bill implementation, landowners will have the option to convert generic acres into seed
cotton base acres and/or other covered commodities planted to generic acres based on the farm’s 2009 to
2012 planting history. Under the seed cotton program, a cotton seed program yield will be established for
a farm. That program yield will be equal to the farm’s counter-cyclical payment yield established in the
2008 farm bill or 90% of the farm’s 2008 to 2012 average cotton lint yield multiplied by a factor of 2.40.

Landowners will have to elect to reallocate all generic base acres on the farm. Any future PLC payments
will be made on base acres and not on planted acres (e.g. payments will be decoupled from production).
In the case of a farm where there were no covered commodities (included seed cotton) planted between
2009 through 2016, generic acres will be allocated to “unassigned crop base.”

If the farm has a recent history of planting covered commodities, generic base can be allocated to seed
cotton base in an amount equal to: (option 1) the greater of 80% of the generic base acres on the farm; or
the average number of seed cotton acres planted during the 2009 through 2012 crop years (not to exceed
total generic base acres on the farm); or (option 2) base acres for covered commodities reflective of that
farm’s 2009 through 2012 planting history.